The March bank statement of Sparky's Sub Shop just arrived from Inland Bank.

To prepare the bank reconciliation, you gather the following additional data:

a. The following checks are outstanding on March 31:

Check No. ___________________________________ Amount
800 …………………………………………………...…….. $415
802 …………………………………………………...………. 76
806 …………………………………………………...………. 30
809 …………………………………………………..…….... 123
810 …………………………………………………...……... 229
811 …………………………………………………..….……. 43

b. On March 31, Sparky’s Sub Shop’s treasurer deposited $320, but this deposit does not appear on the bank statement.

c. The bank statement includes a $674 deduction for check #1668 written by Frank’s Franks rather than Sparky’s Sub Shop. Sparky’s Sub Shop notified the bank of this bank error.

d. Sparky’s Sub Shop’s Cash account shows a balance of $12,600 on March 31.

e. The EFT for $1,200 was a collection of rent revenue and the EFT deposit for $350 was a collection on account.

Requirements

1. Prepare the bank reconciliation for March 31.

2. Record the journal entries called for by the reconciliation. Include an explanation for each entry?

Transcribed Image Text:

Bank Statement for Maroh Bal, Mar 1 Deposits: EFT-rent EFT-deposit $13,846 $1,200 350 Interest 1,555 Checks: No. 807 Amount $500 808 150 674 (1,324) 1668 Other Charges: Service charge $ 17 NSF check #698 NSF check #701 75 192 (284) $13.793 Bal, Mar 31